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Performance Marketing – Basics, Strategies, Tools and Agencies

Performance Marketing is the best way to achieve a specific goal with little risk. Often this should be achieved more sales. In this article, you will learn the basics of performance marketing and the most important strategies and tools that are used.


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Performance Marketing Basics

Performance marketing is the use of online marketing tools aimed at achieving a measurable transaction with the user. In contrast to conventional online marketing methods, the media are always rewarded in performance marketing – for example, with a pay-per-lead or pay-per-sale pricing model (definition and differentiation from Wikipedia or IAB-Switzerland).

Performance marketing gives the advertiser the power to focus on the most profitable measures. You choose the action and then pay when this action is completed – whether it’s a sale, a lead or a click. Performance metrics are 100% measurable and advertisers benefit from low risk and a clear focus on ROI (more on Outbrain).

Performance Marketing Strategies

There are a large number of individually configurable measures in performance marketing. The aim is to optimize all measures so that a specific target value is achieved. For example, the goal value may be the leads or the sales. Frequently, the performance marketing strategy pursues one of the following three goals.

Maximize revenue
In most cases, for a given budget and timeframe, the revenue generated by performance marketing should be maximized. If the data is available, it can be optimized to maximize the trading margin.

Maximize sales

This strategy is used, for example, in the acquisition of new customers. Because this primarily counts the number of new customers, while the lifetime value of the customers can not be measured at this time.


Maximize leads
This strategy is used by retailers to increase newsletter subscribers. Insurance companies use them for as many appointments and car dealers as possible for as many test drives as possible.


The measures can then be determined in order to achieve the set goals.

Performance Marketing Measures

As far as possible, performance marketing tools should be chosen that offer comprehensive targeting and tracking options. Because the more data is available and the more results are measured, the better the performance can be specifically increased. Most of the potential can usually be exploited with the offers of Google and Facebook.

Google Ads
With the Google search engine, Youtube and the Display Network, Google offers the largest reach with 2 million additional websites and apps. Over 90% of Internet users can be reached daily with Google. There are also numerous targeting options, such as keyword targeting, retargeting or similar target groups. Due to the large number of settings options, it is recommended to use the automatic bid strategies. Google’s machine learning can handle the large volume of data and deliver a much more accurate delivery of the ads than would be possible manually (more about this at Semsea).

Facebook Ads

Facebook offers ads in its own apps such as Facebook and Instagram as well as in numerous other apps from the Facebook audience network. Similar to Google, there are numerous targeting criteria available on Facebook Ads, such as demographics, life events or interests. Facebook claims to have stored about 2 million data points for each user. It is also advisable to use the automatic bid strategies of Facebook, so that the campaigns can be delivered optimally (more about this at Thomashutter).

In addition, additional advertising networks such as Criteo or Converto can be used. Measures can also be implemented on your own website. Existing leads can be activated by e-mail, SMS or push messages. For retailers, it is also advisable to include in-store traffic with appropriate POS measures.

Performance Marketing Agencies

The implementation of a performance marketing strategy can be brought in by a performance marketing agency. With measurability and a transaction-based pricing model, advertisers can easily see and compare the return of performance marketing agencies.

Performance Marketing Agencies for E-Commerce
Es existieren viele Agenturen, welche Performance Marketing Strategien umsetzen. Nicht alle bieten jedoch eine Abrechnung im Cost-per-Sale Modell. Eine Übersicht über die Performance Marketing Agenturen in der Schweiz finden Sie bei Converto.

Performance Marketing Agencies for Retail

If you also want to increase sales in your stores with your performance marketing, the measurability must first be established. For example, use Gonnado’s Offline Conversion Tracking. As a result, retailers often expand their potential sales up to 10x, compared to a pure ecommerce campaign.

Or use the tools of Google Ads, Facebook Ads and other online marketing providers and implement your Peformance Marketing strategy independently. If you comprehensively measure and optimize your measures, nothing stands in the way of performance marketing success.

Start your Performance Marketing

The circumscribed approach can be realized with the available online marketing tools. In addition to online marketing, CRM, sales and IT are often involved in the implementation. With limited resources, you can hire a performance marketing agency like Gonnado. Be inspired by the published case studies on performance marketing examples or read more about the Gonnado performance marketing platform‘s all-in-one solution.

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